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FGMSD-78-61 1 (1978-10-20)

handle is hein.gao/gaobaaydd0001 and id is 1 raw text is: DOCUMENT RESUME 07395 - [(729680521 The Goveznmpnt Needs To Do a Better Job of Collecting Amounts owedL by -he Public. FGMSD-78-61; B-159687. October 20, 1978. 41 pp. + 6 appendices (12 pp.). Report to the Congress; by El%er B. Staats, Comptroller General, Issue Area: Accounting and Financial Reporting (2800). Contact: Financial and Gcneriil Management Studies Div. Budget Function: General Government: Executive Direction and Managemint (802); General Government: Central Fiscal Operations (803); Miscellaneous: Financial Management and Information Systems (1002). Orgatization Concerned: Department of the Treasury; Office of Manlagement and Budget, congressional Relevance: i!ouse Committee on Armed Services; Senate Commitcee oL Armed Serv.ces; Co:,gress Authority: rederal Cla'.ms Collection Act of 1966 (31 U.S.C. 951) . Budget and Accounting Prc ;edures Act of 1950. Anti-Deficiency Act. =4 C.F.R. 101. OMB Circular A-11. Government accounts receivable are generally identified as assets from the time transactions giving rise to a claim are complete until payment is received or a claim is determined to be uncollectible. Payments usually are require-! within 30 iAys from billing, and interest charges may be levied if pay-_ats are not made when due. The public's debt to the Federal Government has increased fro, $10.4 billion in 1973 to $14.6 billion in 1977. Findings/Conclusions: Errors amounting to $1.3 billion in accuunts receivable were identified at 12 agencies. Problems included: failure to include unrecovered beneficiary overpayments as accounts receivable, failure to include amounts hpcause of delays, amounts shown as due for the wrong time period, overstatements due to errors, and amounts already collr-ced shown as due. Most agencies did not take prompt and agres-.ve collection action on delinquent accounts or adhere sufficiently to prescribed collection procedu-es. Other problems involved inadequate identification and followip action on delinquent accounts, lack of knowledge relating to collection actioas, lack of documentation in claims files, and failure to take required action in referring delinquent receivables for further action. During fiscal year 1976, five Federal agencies wrote off claims of about $200 milli:n. There were inconsistencies in agencies' practices relating to charging interest. Improvements are needed in accounting systems and financial management. ilecommendations: The Secretary of Treasury should revise the Treasury Fiscal Requirements Manual instructions for preparation of financial statements to require: accounts receivable not due within a year or less to be classified as Poncurrent assets, unrecovered beneficiary overpayments to be reported and identified as accounts recievable, and considey:ation to be given to past collection

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